Katrina to hit Journal Communications

DavidB. Wilkerson

SAN FRANCISCO (MarketWatch) -- Journal Communications Inc. warned Friday that third-quarter results would show the impact of Hurricane Katrina, which caused the shutdown of its New Orleans printing operations.

The Milwaukee-based newspaper publisher and broadcaster
JRN
said it now expects net income to be at "the low end" of its forecast range of between $14 million and $16 million.

In addition, storm damage and the related interruption of business will lead to losses of about $1.6 million in the period, Journal Communications said.

Revenue is expected to fall short of the company's previously announced projection calling for a range between $186 million and $191 million. Analysts polled by Thomson First Call had been anticipating revenue of $188.1 million.

Journal Communications said its Louisiana-based community publishing and printing operations had been plagued by "persistent weakness" before the hurricane. Now that Dixie Web Printing, its New Orleans facility, has been damaged by the storm, the company has opted to move its equipment to other locations.

The shutdown will result in a charge of $2.9 million to $3.4 million, most of which will be taken against results for the fourth quarter.

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